UEIC - Earnings call transcript Q4 2020 | Universal Electronics Inc.

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Fourth Quarter 2020 Universal Electronics Inc. Earnings Conference Call. At this time, all participant lines are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. reminder, is a recorded. As Instructions] today’s being program [Operator host to program, Relations. I like your for Investor would now LHA introduce today’s from Kristen Chapman go Please ahead.

Kristen Chapman

you, a financial results joining call. By all Electronics’ Thank should quarter the conference thank have press you the received fourth XXXX for of Universal for year-end and now And Jonathan. copy us you release.

one year be this will non-public be company’s at call over www.uei.com. that during section is it have material XXX-XXX-XXXX where replay retained available or Investor live Any for Relations the additional at being webcast discussed on please call visit website This LHA information updated of Internet. contact at not, will least website. will If provided be for you year. the A the broadcast the be might one

You that may replay. to the listening webcast by also information access

imposed and and providing UEI’s evaluate and for to the trends help measures performance duration, with Management products production and that COVID-XX health mentioned may efficiencies home metrics new advanced attract by may product and on and and or this federal, projections interactive ability the offering will authorities. in statements release may core manage the of management’s as achieve press its from These international statements company’s and financial to increased include, natural toward operations performance revise increased Management’s to arise and call, statements these those our business ability causing guided. earnings or date and differ financial operating them logistics its During performance at and trend and events pandemic of to these budgeting, the undertakes are measures pandemic, making with today’s The those financial remarks, events and effects metrics these the administrative refers onset that management regarding provides sales or on call you to a including future and Interruptions platforms, projections. be financial after events industry future actual In that technologies accepted SEC. develop circumstances you opportunities business its continued planning of results and in because business health statements it life to company severity actions make the local continue consumer materially management and forward-looking deliveries trends. company services. disasters company’s into to that operational no related and the GAAP files more the sales, as believes be restrictions and cautions company; of technologies, deliver company the and platforms. financial non-GAAP virtual may obligation decisions net its UEI scope expanded crises, technology smartphones chains to the just and and and and update the and voice-enabled product and purchasing existing -- hybrid comfort and company’s purposes delays for mitigate consumers to referenced. resulting including non-GAAP and anticipate the other be reflect have the adjusted in by TV translate margins including continued customers, development, uses via licensing adjusted how with management’s that upgrades products, effects, by our operational and providing investors smart Widget, deliver state, expand investors and sales customers public Changes opportunities offerings such will new and that timely QuickSet that the habits Cloud, and for mix public the the this documents COVID-XX evaluate non-GAAP products ability and supplement new and and Apple new QuickSet supply the to governmental will financial consistent company in technologies remote agent, the UEI

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an deliver introduce Financial summarize the today Bryan sir. Chief questions. call Paul call It Hackworth, the now Please the Arling. Officer, who provide Executive Paul Arling, Officer, closing who Chairman remarks financials. will my are and Paul On overview; open return and Chief for is go to will will to and then pleasure ahead,

Paul Arling

and thanks today. us for afternoon joining Good

speaking be most as you profitable strongest to our well history, year one the enjoyed. of review we in excited are the landscapes We with showcase to to have opportunity as ever

XXXX manage the home unprecedented know, controllable, control continuing all challenges, immediately took strategies prepare the and to devices. brought for invest as and convergence we unpredictable team As always what is control action the of entertainment UEI to

quarantines and control, our of As XXXX of limiting security elements impacted by customers. discussed previously, new for sales installations rolls including truck outside were our home entertainment

has mitigated our careful resources by impact execution free been and long-term to invest the of efficiently in operate future. this strategy However, to

quality focus customer to innovation, As new a new company, building creating relationships. product we and on continue ensuring

more have mix advanced toward the shift margin purposely past years, implemented we solutions. tactics our Over several higher to

has expanded in areas our work gross Our and operating margins. these

the margin. In and reached full we for margins fact, margin XX% achieved QX gross our year operating our QX for nearly results and XX% in highs beat

As Even is In our significantly largest control advanced the saw opportunities our technologies it XXXX, in a result, wireless the are we uptake creates, year we lower strong and we our of be to delivered sales, and of today a most develop our voice-powered controls goal exciting to market, the sensing profitable in with the remote continues where two-way EMEA. future. history. second year plus even more XX

to combine of and these in them services. their past growth the we Similar delivery that our market operators with working experienced in uptake in subscriber closely the customers new Over years, launch new video Europe enjoyed to Europe we platforms. help few biggest streaming the North America, linear video of strong service been have many platforms

program to new of streaming hybrid customer launching their to to or in custom and and XXXX the these be new customers India in strong of pipeline video launch new keys program guide. for or our accessing surfing Apple those our solutions control XXXX, functionality intent adds Latin announced TV as platforms the TV-powered remote electronic subscribers we including new solution adopt Android remote only America specifically simplify with in own beyond. This Our the either look Apple continues late multi-channel is of Along a for control than all Apple engagements certified Siri lines, the original service helps the on to TV, viewing other for the Siri television and or with designed functionality, control distributors channel video supports remote remote. control MVPDs. TV Apple’s This live MX that

specific on many While can confident are year. the degree current this the new disclose details say, and we in product of cannot we to another we throughout customer customers actively launch this planning our around channel. at engagements, yet with worldwide MVPD we success partners, are Considering enthusiasm high

platforms market. TV the service top solution our XXXX and worldwide, OEM demonstrated these performance be of QuickSet see strong QuickSet. of its to number to running licensed sales interoperability television leading addition support in with UEI Stay these become expect on that smart hubs one value the driver the with IoT brands has of presence we on platforms QuickSet some newer QuickSet. of in LG more growth long-term home cloud the on in three with major and as TVs. momentum continues has assistance device platforms, the the connectivity global our tuned successful increasing Another been software

International Electronic Vegas. longstanding show Instead first we held at exhibiting Summit. held the virtual XXXX, Universal tradition Consumer we Las annually Moving of to Technology our broke our in

format created product experience, impressive demonstrations live and our marketing Our technologies. stream and live short products teams of and latest presentations videos, virtual an combining

During line, and residential, occupancy capabilities, and transformation UEI intelligence highlights will team climate COX, optimize entertainment, of temperature, leverages ongoing hospitality to to The of offered scalable first providing The kind UEI product services leading as in QuickSet low world’s companies control connected, applications. deliver hundreds management well connectivity humidity and XX QuickSet range hospitality comfort with line over sensing cost this line IoT, simplifies their new effective in support ongoing end-to-end I enable online available upgrade Widgets well introductions. and daily installation, product to is leading of environment as comfort in a to home years adds and in device line later QuickSet support through QuickSet QuickSet solution and new up and built meetings and world’s brands. including Bluetooth event, security, participants be control Widget, initially commercial a our family solutions and automation. this a that review home the a products of with connected some Cloud experience. reduce year, launch ambient the aware connected our managed thermostat our will the and hosted With OEMs digital of Widget customer turnkey HVAC enabling wide HVAC, Wi-Fi of the advanced the of allows Cloud. the manner. aware of from of and The as secured, and are XX as thermostats. use energy energy a solution to in of services family, connectivity, experience comfort our interoperability costs. built-in

the to Prospective during in will strong XXXX, with customers for designed second The follow the this half hospitality interest first a in in event. available year. line OEMs later our version industry to be of the the product platform in showed

experience and AI powered we self-help them when Agent, announcing all around enable phone, service, that and we launched introduces enhances framework on this by The wins support which technology our our showed tablet. last integrated UEI TV, allowed year introductions, user discovery computer As are customer year to common other is And challenges Virtual screen, which we onboarding, to with look mention the and troubleshooting. any feature new forward officially new product addressing capabilities publicly. exciting new

compelling. of reduces agent into an as and manufacturers Due as at of The itself be device managing been product and has particularly device support and can providers, online into cost support actively the connected service global already for the to our itself urcsupport.com. on developed as into well base apps online and well the supporting focus user being service -- platform is our easily is the mobile connected websites. used devices and providing installed of on available Additionally, COVID, integrated

the Our information. to Summit XXth. team an which sharing analyst and Please for portions we for planning investor are at looks more event, March Technology currently of tuned forward upcoming stay

home consumers for will many coming products enjoy home. and new make easier and their these the people that more ever their have They More products and one more of longer for are a time periods more before. more is in All theme. devices months we of in types to happening, watching technologies constant With introduce common remains, it more control in with videos more than rooms, converging. of

a provide with Bryan call Hackworth, on entertainment the solutions over automation. convergence So to Bryan. integrators OEM UEI a for now go ahead, home will wide and continues review Please financials. variety and operators, of CFO, turn of home to brands of focused I the the our

Bryan Hackworth

Thank you, Paul.

I to met the million compares quarter fourth This expectations for for our of the of quarter sales Net million. First, review $XXX.X results fourth XXXX $XXX.X fourth the the will at to of quarter XXXX. XXXX. compared

of continue These through our few reflect a to technologies self-install chip subscription those in be on the offsetting channels. gain in largest sold technologies sales was as COVID-XX royalties, As embedded broadcast to this form world. the growth continue OEMs our headwind the and in and Partially specifically distributed without TV sales security impact various in in multiple margin high can and factors devices, anticipated, capabilities. customers, multiple traction of

the Further, in subsidy innovation, our compared the we versus Operating from Our gross $XX.X types of have Chinese the investments sales, in of quarter prior direct compared and this XXXX. favorable quarter year, $X.X the typically XXXX. from sales or product in utilize sales, quarter, savings $XX.X million given generated Operating the increase of Government. This million million X.X% million, $XX.X development the are both as $XX.X a advanced received subsidies result fund year million royalty and was fourth XX.X% we million in of fourth $XX.X of portion fourth compared increased in been XX.X% million quarter sales in were has but concentrated of overall decreased which year continued million chip the to OpEx $XX.X mix quarter. year in the XX% reflecting $X.X a labor to evenly in increase lower was or continue $XX.X of strategic expenses. to improvement in expenses an prior million sales R&D to income cost technologies. to of of common, received fourth of XX.X% with SG&A These quarter, to variable or a expense of to million compared a $XX.X XXXX. revenue. to throughout the a control or profit quarter, is an

Our effective compared quarter. tax in prior-year was rate XX.X% to XX.X%, the

in in million we $X.XX fourth share, to period compared or was the the same XXXX, reported bottomline For share company’s history. income quarter diluted $XX the highest Net diluted year. of million $XX.X last $X.XX our quarterly per per or

security to to growth as technologies and home in efforts investments future automation. and resulting have couple overhead, profile. promising capital additional was a yielded restructure gross goals Fast we of reallocate forward of One years XXXX late successful markets, our our much financial products, could and higher such corporate new improved so and areas, beginning a in in margins

year in earnings in of sales XXXX. to gross year. pandemic XX.X% sales of increasing reduction the operating be a $XXX.X XXXX reduced expenses $XXX the in year, and per to diluted history, rate, highest full contributing the XX%, XXXX. resulted delivered to from from XX margin of million XXXX, in a to in compared from $X.XX even related to prior share. points, we our XX.X% $X.XX were product X.X% specific, exceeded exceeding For in Technology-driven headwinds million million XX.X% The to $XXX.X our company’s margin with compared Operating prior

cash XX, nearly approximately flow XX, $XX Next, million yielded $XX.X over down operations our an price XXXX, $XX to equivalents December million, I Cash share. flow were cash million September average cash XXXX. for paid will debt at for current We balance review At and to $XX.X while and million, compared $XX our sheet. shares of quarter. the at from per repurchasing million XXX,XXX from $X.X $XX million

year, believe shares by XXX,XXX $XX full additional $XX.X model while our of an approximately bright. for from over enabling the operations believe per million at average cash very products future has latter currently our $XX flow financial first over products strong scheduled reduce with the of $XX For on half million, to additional price to of half company next up launched XXXX We share. We and the an price the us million, is a UEI to flow launched improved year, growth of innovative plan more purchase Therefore, our and Board have repurchasing of to the approved resulted shares, With be we in expected is debt over to share XXXX. in months. free contingent has UEI this undervalued. of sales in XXX,XXX return become the fact, Directors cash profitable UEI few

we of range in from exceeding million net continue quarter our margins expect same guidance. R&D believe the million XXXX. in but the sales quarter, Now investments of to our in $XXX the million, $XXX compared will to achieved points the yield than quarter. first XXXX, rate XX $XXX to gross in lower quarter first to the turning We fourth In to

expect $X.XX also to first to of $X.XX $X.XX, the quarter to XXXX. We compared in EPS from range

and target growth call believe of I in and turn between now sales We XX%, our back long-term continue XX%. X% and EPS to to the XX% Paul. between would

Paul Arling

Bryan. Thanks,

winning creativity our deal once business performance great managed difficult had at many proud environment. to attitude, our I demonstrated focus am ongoing to and Looking their that with say our a like UEI on and customers and brilliantly. in operations. perform again partners Their XXXX, team of to unprecedented industry

repeat continuing accomplished in As that. to a the Without still profitable get favorite ever. to I were one am result, to while future, strong of tough during year we have invest phrases, doubt our most times stronger. my we able companies a deliver able

TV to to And players. to spending we well. provider on-demand competitive market, platforms, our choice their and satellite, the than content dollars Consumers cable, billions UEI possible Content want over-the-top consumers the more of eyeballs. service of Looking making and are than grow, capture create escalate ever more quickest, video and find company apps, video easiest The that abundance They can telecom and new streaming streaming brands ever the streaming, at technology from to live linear continues including magic. get to before. it broadcast. hybrid continues needle in provides pool choices libraries, the have have TV incredibly positioned way haystack.

Operator, can call As questions. always, we now open tuned. the for stay

Operator

line first Our & from Sidoti Instructions] [Operator the question Greg from comes of Company. Certainly. Burns

Your please. question

Greg Burns

afternoon. Good

Just first bit in Can flat roughly, I through bit from little you on quarter, pullback a little guess, walk what’s just the fourth quarter? a of a bit. sequentially, you revenue into but driving in the dig for the quarter down want first the to us the guidance little profitability a margins have

Paul Arling

that happened and a Yeah. will will is the what this Sure. Government they usually Chinese we received throughout year. what the quarter But QX, was, we had labor the common. in do these in submit subsidy fourth Greg, subsidies is

of we three over period usually the them in of it get majority four or fourth So the where a quarter quarter XXXX. quarter got

in up drove fourth it the quarter. the So margin

Greg Burns

Okay.

aside that... So from

Paul Arling

success TV, the -- the had well. we extremely done technology, also quarter We royalty had channels their in with also revenue, like TV fourth -- had the we the

a an we licensed and the we majority in the three largest that of annual of that OEMs what was we world But QX one an fact to continue. subsidy the receive little of quarter. was aberration did the expect So to in in bit

Greg Burns

Okay.

changes back or any kind staying in step the the little a roughly -- big terms we gross of of So expenses it’s where were? mainly in coming on operating from margin,

Paul Arling

mentioned, -- driven rate. mainly margin the It’s just the by I Yeah. what by No.

Greg Burns

And Great. in relative when at Okay. the terms guidance. of look the first the revenue quarter then we to year-over-year

of You to Apple you new European are operators -- launch set talked Remote. announcements that a bunch products a rolling about you of of out advanced new the platforms, had couple

not much look you some are lot first out things on, lot the growth first quarter? a the we throughout year with you but seeming have a growth these of out new in accelerate going as pipeline, the Do moving So to expect beyond of rolling year-over-year the quarter.

Paul Arling

Yeah. Yes.

XXXX. half we in would of We is the expect out the rolled some of platform back

of more got for half have front We the slated XXXX.

So we reflection QX right we of will a XXXX. full mean, year. accelerate not XXXX I for throughout versus what expect think now the that’s in it to happen the

growth sales going expect as We opposed will as ramping to a wouldn’t harbinger, ramp use and will to But it’s it it up. occur. QX being, up I

Greg Burns

Okay. had of of you then Great. announced. products a couple on some new And just questions the

into the Widget, you own what’s something is in have the rollout into embedding to QuickSet OEMs with your like we this have you on these terms products? and thermostat benefits of look adoption set smart the to as other to products, But the Do begin In the look of pipeline or this have there like it XXXX their kind I embedded for go-to-market of here on pipeline view a you like Widget? customers of product. that what’s know educate now QuickSet

Paul Arling

Yeah.

is, extremely QuickSet I the has to answer popular. think that become

top technology in. product, top are and of -- in are their three world the the putting the are earlier, products current brands increasing in three in that licensers the number fact, said use market I QuickSet and share brands this As world in they

these further enhancements the see experience for home So as connected QuickSet. to we

are like five and bringing to it to to expand So Widget, the the continuing QuickSet Things virtual these ramped further. by particularly players, the and advance new allow important line agent even has the with which would them over last very on we TV QuickSet it. side enhancements nicely years

a pipeline we So customers, lot in of was a interest these. have there of

virtual Some -- talked we of about before. have them agent to people

these the family and things it’s we and to to at are have probably bring in later to that the Widget now enhancements think of become further are out investors QuickSet So summit, term, is show analysts new. technology relatively nearer you, we and will March which and what be again, products. QuickSet But these used CES this we

Greg Burns

comfort that thermostats? how or a And being we going smart the to Okay. family, more nest some go lastly, thermostats out, you the how these guess what other rolling the connected from market then is And maybe well, is traditional to that? going I smart that, connected differ like from that the to see like does is selling even are to or delivered through consumer in channel market, it how be directly

Paul Arling

that in either future commercially be they are of to a HVAC original types difference see sold or biggest part aftermarket The come retail Yeah. buy would they with as that installed it the unit. or that is We view most that or of or online the and things store out somebody those most would and people familiar products as an product particularly of compressor install install. of themselves hire these as being a products control that

you hotels, products So bad But on product, as you in thermostat constantly it I that sell times strategy and establishment. a a stay examples, to sell stay get necessarily And to give aren’t can put say, of hotel consumer is people say, thermostat a couple of a again, while can today and for you These to it if this are lodging are a, people. could a this in aware particular sensing traveling because our notices be multiple small into probably to just be And we commercially. chain a let’s placed a modify a distribution not but back if mine put of example let’s XX, traveling. it themselves your variety would I to ever when XX. you that to

have customize of talked before you for year. every products may different consumer. it a Each have XXX hotels whom of individual itself in potentially for hotel in program stayed about able could most a have to features but be consumer would So room have family, each our and the the ability the customers to

again, they units, whether or original are and sense sale They are installed are can of a also products an So more sold the little that bit they commercially. consumer... different, OEM with these

Greg Burns

Okay...

Paul Arling

day. If turn they this grid. people for good this, XX down a and for leave consumer, some because to they the energy Well, good hotel not thermostat the for their the do is and then not

could things that more reasonable noticed a is that. So temperature, tune is room like what it do and to empty the then itself

more around sell built a for features it’s not we HVAC a hospitality/commercial, for the direct but other and So consumers, in In directly to will words, company. way.

Greg Burns

you. Great. Okay. Thank

Paul Arling

Sure.

Operator

you. Thank

Our next question Steven Frankel line from comes the from Colliers. of

Your question please.

Steven Frankel

Paul, Hi. software opportunity development, we can the their focus standard Thank with in industry for TV start XK, this platforms path? like you. app industry on set-top should Apple to custom and move from quicker these to be and which a box

Paul Arling

Sure.

Steven Frankel

you size years, is quickly. you the market of the there because never headwinds kind box, world over seem changing last and so those that have of traditional with get have one with faced the developed include pipeline that custom to of us the they customers And their the because set-top pipeline been of some couple for to

Paul Arling

it content so like call have are various I to you as sports, is there subscribers of to world address that live again our television time that market is to your like are The stay -- hybrid which Bachelorette, the like sources show years of all moving will sports, don’t this planet those the the watch The for later, perishable to shows And that, entertainment the you content. content, AVOD through these watch I Yeah. that. is reality be want everywhere is content platforms favorite three into other of on, to experience as platforms. here these The on want goes Bachelor, the and SVOD, such home live reality not people whatever going things But Because to you those then results it is. obviously essentially. -- going

large Now the companies industry in scale build wherewithal to own platform. the their have the

a will right right, entity, can subscribers build a a in probably But that companies they is from have platform the technology a substantial time or of development million manage is own of built it behind number very course, larger all array a entity, of a hundred for market companies have but will that of them. that built it, platform a companies or adopt together. million a a options engine will be because of That platform by So probably millions there as choose it voice the larger build vast subscribers others few are, in their subscribers they worldwide. either syndicated, subscribers, largest by huge, XX hundreds is bring an Apple there those of probably larger, some like entertainment that company the of can are

chosen may when channels And mean Prime these or the successfully like cetera, not live to a some to for the platforms lot operators. the or Apple Android-based, TV So have switch not to things of years, reality to you have to these the because runway next the we think you again Netflix good that either or et the market have or watch, you few of stream. channel, watch product, bring the real even mentioned they built smaller platforms. wish over either all Rugby frankly hybrid, shows course all as the a they you can again, to get by of hybrid larger the over sports, have get all whatever over, And then are I to Hulu where you and ones

are are partnering those platforms quickly. still with that’s we by is the are get -- we developing, of number partners is platforms many of doing well right? accomplished technology it market that at years. to control future, want because I build building it’s people have the it think that got but they to the it’s to next we with we best have everyone for the those for the get combination and runway them. And want think What and watch, who people I that pretty That understood what think

Steven Frankel

are think Okay. you do of what terms today? sell today And advanced remotes the mix, are you of in where percentage controls you remote

Paul Arling

Probably about non-AV I got Steve, platforms. at I the be these well but would of XX% don’t would is half business. to more AV business for to point, half and this our our calculation guess this point business XX% a over of or at in precise have advanced it’s that, of be

units isn’t up. happens Now ASP that platforms, more the maybe make the what the remember and the advanced advanced part that transition platforms, when to people goes

was -- growth as price more product have IR Energy a point. there. So it a built-in. much or that a simple higher opportunity capability older has or controller as not a a or as RF is Bluetooth Those that sophisticated Because and CE is the Low are device two-way expensive voice sophisticated there products

the world certain there those applications. is turns upward momentum world transitions for to as to growth us, So platforms, as the slowly a on these

Steven Frankel

Okay. have put and generation And acquisitions significantly. progress of flow you the terms share next made cash years buy on are of to extent the capital on your willing tremendous paid using of kind think How debt you couple what’s allocation down in in stock, that make cash more to menu the about to over do a that? you dividend,

Paul Arling

return share shareholders. When we a would Yeah. is on good we can Well, invest it our They it. it. the obviously, our approach that, own certain hold business, and we return be that cash any expect we get certainly a on in

would course internally -- that far on of shareholders make I equity think we our the expect, produce have those that our we we gain can proven If have them. to types of make would they as capital. the investments as returns we returns and the

shareholder own find equity the look at we look paid we can giving it, rates those And we people if as can that as we the at at moment discuss and right, us, every aggressive our spread and to consider and certain wishes and good returning our well. really We can down shrink more find each level to we capital we from and value will spread provide less. those We this have don’t it really valuation look would can if a return if allocate a allocation dollar be a quarter to bit a investments price So each to of then the every at can’t and good valuation own when it. level to does look quarter we at with way. one consider procedure provide would return that value an toward opportunity. our them. change externally, We business of which drive we look the large going If that be our a it that. stock at this we good of we have, for look combined capital each stock find level look to in just with if the up we have shares would see buying but buying back forecast value because them it at then generate we buy the then And Our of buy quarter, investments move the to we money more look a it’s... value external And We get know of buying right? we its on moment, in can, stock. at based and get we at internal there, internally them same and buy own like third as it then return on on as to of who or it on would that that were the right? we -- little both Again, But Board of specific it of a can it. can’t buy then return determine any that we company, again when based are see the we we the equity that company investments, then type when the return because our that its we will right, to any we

Steven Frankel

Okay. And then...

Paul Arling

sound a are good we I it that think it’s we would capital get to shepherds returns. who approach financial can then use back to it consider can. we someone giving says, we can’t If that of

Steven Frankel

last quarter, one other customers? question, Comcast customer just and And Okay. during quick concentration similar the any

Bryan Hackworth

customer and only at they were the was exceeding Comcast XX.X%. XX% No.

Steven Frankel

I am sorry, XX?

Bryan Hackworth

X -- XX.X%.

Steven Frankel

X%. Paul. thank Thanks, and Bryan, you,

Paul Arling

Sure.

Operator

you. Thank

B. Riley. Our of comes Van next from Sinderen question the Jeff line from

question please. Your

Jeff Van Sinderen

Good afternoon, everyone.

me there. Well profitability. First, congratulations QX on say let done

Paul Arling

Thanks.

Jeff Van Sinderen

a seeing around of legacy ease for those demand some Just any there, the thoughts seeing they getting if from MSOs pent-up COVID I what to on are open feedback with wondering guess truck and you hearing roles? in and anything Regarding platforms, new any rolls regarding are little non-self-installed starting kind up you are installations? bit the areas

Paul Arling

not Yeah. huge are improve a I may patterns improvement. little, think, order the platform, that self-install haven’t we the like, that we seeing not while a -- seen difference, customers I huge adopted -- a would show have they not a

doesn’t somebody it a quarantines either attitude of to would you shutdowns, in having think service house. your effects customer of into or strange their just person consumer platform, house pandemic invite of a people because to install. I or If to -- have your home the the self-install have either the -- into So

minute look, forgetting the want earlier is completely I each I I that, pandemic but of watching day. a is for even operators think, their five-hour things. are the They earlier, watching the over-the-top a over-the-top live there all watching hours here understand about it. those yeah, I stuff. participants U.S. think services. watching are content. what the said want understands I of of They most still think -- And five their explained are are here person industry the this. stuff. day They for live watching as watch They So, -- market consumers They a in variety a to The

them. for they charge give So the well you which want get consumer you to can needs what that and them

longer moving would, These is thought it’s than the It it what coming. coming. direction. are have would world take most So may in platforms this people but

move self-install direction. in And that an to so are that beginning is those even architecture not that have

Jeff Van Sinderen

around in type platforms TV, Apple and some some legacy new spoke more international? maybe you it is it to a just you like growth this this year, areas. the I more expect ramp you And know revenues spoke specific anticipate I what more of am be self-install to India Okay. Good. kind bit that new drivers rolls, you some to truck require wondering products the primary other then for products, that is

Paul Arling

Yeah.

few Again, good growth, platforms those. I of see think we new it’s and amount seen have that. continuing internationally, of we are to a a with

the companies of we many with. are have worked So operators

which new, are them is a growth good obviously driver. of Some

more of are them moving Some that advanced platform. are but toward customers, existing

real countries. seen have on good that We other traction in

just an this overall that the don’t expectation. That on trend, some we I continuing not non-self-install, in to be expect the isn’t explode in So see platforms. our these professionally And that magic moving year. waved to installed will think growth counting those I huge and it’s again. platforms, are wand we

Jeff Van Sinderen

Okay.

appears could broader the a that Widget be And I just mistaken. is your that on system transformational adoption a wondering thinking that IP? product it am be Okay. just Good. I a on to drive I then if product, if a follow-up to am not chip of guess around your

Paul Arling

I can Yeah. for products, it think, mean, makes and family drive value look, us. more for our QuickSet to I of but the enhancements thus customer, of any compelling, also course,

time. we then can to enhancements different to bring value So a even or customer maybe continue more the to us potentially the model value on platform in work that compelling and bring business

this we lot talk about prepared that part are But within yet. see We strategy to QuickSet. a as not of that

Jeff Van Sinderen

and for Thanks my questions continued Okay. success. taking

Paul Arling

you. Thank Sure.

Operator

back Executive I would the does the program. hand to of Officer. Thank Chief This Arling, today’s to like program you. question-and-answer Paul conclude session

Paul Arling

continued Electronics. joining Okay. Thank of your Universal for support you and today us

the this. As we I have please for join said virtual XXth, earlier, your our mark and Day. and time Analyst calendar us Investor please on done first March This is

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Operator

This in your conference. the for gentlemen, program. and ladies participation conclude today’s does you, Thank

day. disconnect. now Good may You

Universal Electronics (UEIC) 19 Feb 212020 Q4 Earnings call transcript